Xiaomi reports revenue growth after strong performance in overseas markets, excluding India

Xiaomi seems to be bouncing back overseas since the onset of the pandemic. The Chinese smartphone maker reported a revenue of CNY 53.54 billion (Roughly $7.7 billion) in the second quarter of 2020, up by 3.1 percent since the same period in 2019, surpassing analysts' expectations of CNY 51.41 billion.

Xiaomi's revenue is also up by 7.7 percent since the previous quarter, marking the beginning of the path to recovery, at least in the overseas markets. Xiaomi's smartphone business saw a dip in revenue, dipping to 1.2 percent since Q2 2019. The company sold 28.3 million smartphones in Q2 2020, down from 32.1 million units in the same period last year.

Xiaomi also saw sales of premium smartphones go up by 99.2 percent year on year in overseas markets. The average selling price of Xiaomi devices increased by 11.8 percent YoY and 7.5 percent QoQ. Smartphone sales currently account for the bulk of the company's revenue, nearly two-thirds.

JUST IN: Check out our Q2 2020 earnings report. Over the next decade, we aim to truly lead the way to the future of smart living. To make this happen, Xiaomi's core strategy will be upgraded to "Smartphone X AIoT" #NoMiWithoutYou#SmartLivingForEveryonepic.twitter.com/Vj6NPslide

— Xiaomi (@Xiaomi) August 26, 2020

However, sales in India saw a more gradual recovery as the lockdown was lifted in Q2 2020, with production constraints continuing. In April this year, smartphone shipments had dropped to zero. India is currently Xiaomi's biggest market outside China and currently holds the largest market share in the country.

Even as the lockdown restrictions were eased in the months since the daily number of smartphone activations were 72 percent as compared to January 2020. In overseas markets, Xiaomi smartphone activations reached 120-percent of the pre-pandemic level recorded in January 2020.

Xiaomi also found itself caught in a firestorm of anti-Chinese sentiment in India during the month of June and July. Among the several Chinese apps banned by the Indian Government, Xiaomi had a couple of apps on the list. However, the biggest issue facing the tech firm at the moment in India is production.